Dallas–(business wire) — Pascal Desroches, senior executive vice president and chief financial officer of AT&T* Inc. (NYSE:T), addressed shareholders today at the Bank of America Media, Communications and Entertainment conference. provided the latest information.
Desroches reiterated that AT&T continues to take a disciplined, return-focused approach to growth and investment, noting that:
The company continues to add customers in its strategic focus areas of 5G and fiber. Postpaid phone volumes across the industry remain healthy, and AT&T continues to see strong demand as its postpaid phone churn rate remains low. In addition, AT&T’s consistent, disciplined and simple go-to-market approach continues to attract high-value customers. Desroches said the impact of recent pricing on churn is within his expectations for AT&T, and the company continues to expect price changes to increase later this year.
AT&T continues to expand its fiber footprint and can now serve 18 million customer locations in over 100 metropolitan areas using AT&T fiber. Desroches said he was pleased with the increased penetration of the new fiber build. As AT&T expands into new markets, the company nearly doubles its first-year penetration rate from previous baselines.
Desroches noted that AT&T hasn’t seen a significant incremental shift in its cash collection cycle. This is within the company’s expectations and broadly consistent with normal pre-pandemic levels.
Although the current macroeconomic environment has made it difficult to see economic trends into next year, Desroches reiterated his hopes for an improved cash conversion in 2023 compared to 2022. Factors driving the company’s outlook for improved cash conversion include expectations for improved service revenue levels in 2023. Larger customer base and higher ARPU — benefits from reduced interest costs and savings from ongoing transformation.
The expected improvement in cash conversion from this year’s free cash flow guidance of $14 billion will provide AT&T with sufficient financial flexibility to meet its financial obligations. Exceeds past capital spending levels.
*About AT&T
We help more than 100 million American families, friends and neighbors connect in meaningful ways every day. From the first phone over 140 years ago to his 5G wireless and multi-gig internet services today, @ATT continues to innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit about.att.com. Investors can learn more at investors.att.com.
Cautionary Note Regarding Forward-Looking Statements
The information contained in this news release contains financial estimates and other forward-looking statements that involve risks and uncertainties, and actual results may differ materially. Factors that may affect future results are set forth in AT&T’s filings with the Securities and Exchange Commission. AT&T undertakes no obligation to update or revise the statements contained in this news release based on new information or otherwise.
This news release may contain certain non-GAAP financial measures. A reconciliation of non-GAAP financial measures to GAAP financial measures is available on the company’s website at https://investors.att.com.
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